When I read that Wonga were entering the business loan sector I have to admit I laughed to myself… especially if their business loans work in the same way as a payday loan.
Well I took a look at the website and I was… not surprised. It’s essentially a duplicate of their standard website and they use the same “slider” system they have on their payday loan counterpart.
With a lot of businesses facing another recession and difficulty in obtaining finance the idea behind Wonga business loans is a good one, however, I have a feeling that they should be turned to as a last resort – much like a payday loan. In fact the Financial Times have already said that businesses face yearly APRs of 280%… cheaper than a payday loan but still a bit concerning when you compare it to a standard unsecured loan.
However, I’m not one to go off on an tirade like an angry politician or an ambitious journalist. I believe that there is space for an alternative form of finance for businesses – whether they turn to a Wonga business loan or look to a business cash advance.
Wonga are offering up to £10,000 over a loan period of 10 – 52 days (seems a bit short to me) and is a relatively quick, painless process.
For a small business unable to obtain credit it may be worthwhile checking out their business loan offering… it could mean the difference between business growth and stagnation. If I were in a situation where I needed this type of loan I’d certainly consider it as an option.